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Budget 2019: Defence Gets The Biggest Boost Ever; Defence Budget Rose To Rs 3 Lakh Crores
The defence gets the much needed boost in the interim Budget presented today.Though, at Rs 3.05 lakh crore defence allocation in the interim budget is not enough for the various modernization plans but does echo the dire needs of the Armed Forces.
Photo Credit : MoD
The defence gets the much needed boost in the interim Budget presented today. Though, Rs 3.05 lakh crore allocation in the interim budget is not enough for the various modernization plans but does echo the dire needs of the Armed Forces. At 3 per cent hike from the last defence budget which was Rs 2.82 lakh crore, at best, set the ball rolling for the defence for a better and comprehensive budget.
The salient part of the defence budget is the increased capital spending by 10 per cent. Budget component has two part-capital and revenue. The capital is what for the defence hardware and equipments. It is increased from Rs 93,982 crore last year to Rs 1.03 lakh crore this year.
Union Budget for the financial year 2019-20, presented by the Finance Minister in the Parliament today, envisaged a total outlay of Rs. 27,84,200 crore. Out of this Rs. 3,18,931.22 crore has been earmarked for Defence (excluding Defence Pension). For Defence Pension, an amount of Rs. 1,12,079.57 crore has been provided in 2019-20. Total Defence Allocation, including Defence Pension, accounts for 15.48% of the total Central Government expenditure for the year 2019-20.
Besides the said allocation, government promised to infuse more money in the defence if necessary. As the Union Minister for Finance, Corporate Affairs, Railways, and Coal Piyush Goyal said “Our Defence Budget will be crossing Rs3 lakh cr for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order” he added: “if necessary, additional funds would be provided.”
Presenting the budget, he highlighted the issue of One Rank One Pension (OROP) which was pending for the last forty years and now it has been resolved. Finance Minister said: “The previous Governments announced it in three budgets but sanctioned a mere Rs500cr in 2014-15 Interim Budget; in contrast, we have already disbursed over Rs35, 000cr after implementing the Scheme in its true spirit.”
Amidst the thumping on the bench in the parliament Minister announced the substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel who are deployed at high-risk operational activities such in case as counter insurgency, off shore navy deployment and strategic offensive and defensive strikes among others.
Industry veteran Baba N. Kalyani, Chairman & Managing Director,Bharat Forge Limited comments: “From an industry perspective the allocation for Defence, which for the first time has crossed the Rs. 3 lakh crore threshold is encouraging. We hope that “Make in India” in Defence will result in greater role for the private industry in this critical sector of the country’s economy.”
The dire need to reduce the fiscal burden on the arms imports he said, “The thrust on MSMEs is also welcome as they have an important role in supporting large industries, achieving higher levels of indigenization and generate higher employment in the country. We welcome this budget.”